Business Formation - Choosing the Right One for Your Company

There are many options to choose from when establishing a new business.  Business entities range from simple sole proprietorships, partnerships, corporations, trusts, limited partnerships or limited liability companies to complex entities such as multiple tier stock corporations. The different types of entities each have different managerial control, liabilities, asset protection and tax consequences that should be reviewed and evaluated before proceeding.

Further the choice of the proper business entity must meet its proposed business particularities. The nature of the proposed business and the laws governing that venture may require certain structures to be used to proceed. Additionally one’s individual circumstances is important to the entity choice, since a personal bankruptcy can also risk the loss of your business and its assets too.

One should confer with a legal professional experienced in your field of business to determine what entity choice is appropriate for you.